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Single Premium

   Also found in: Acronyms 0.01 sec.
Single Premium
A lump sum used to purchase an annuity, insurance policy, or similar instrument. A single premium is expensive, but it causes less strain on one's monthly budget as it does not require one to make recurring payments. See also: Single Premium Immediate Annuity, Single Premium Deferred Annuity.


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With a single premium PPI policy you actually end up paying a lot more interest, as a lump sum gets added to the policy upfront and is treated as part of your loan.
Firms representing more than 40% of sales in the single premium market have agreed to review sales stretching back to July 2007.
Single premium policies that the customer pays as a one-time lump sum continued to drop as well.
 
 
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